Indian spinning sector spins growth in FY’14

July 05, 2014 - India

According to an analysis done by Southern Indian Mills Association (SIMA) the Indian textile sector and in particular, the spinning industry has witnessed growth in the last fiscal year 2013-14.
 
As per the analysis, cotton consumption increased 8.86%, yarn production rose 8.79%, yarn deliveries climbed 7.94%, registrations for cotton yarn exports surged by 33% and month-end average stock of all yarns mounted by 15% in 2013-14.
 
Cotton consumption by mills in Non-SSI and SSI sectors in 2013-14 stood at 286.46 lakh bales, 8.86 per cent higher than previous year consumption of 263.15 lakh bales. Monthly consumption during the year varied between 22.51 and 25.44 lakh bales and averaged at 23.87 lakh bales, while the same ranged between 20.31 and 23.61 lakh bales and averaged at 21.93 lakh bales in the previous year.
 
Consumption by mills in non-SSI sector stood at 261.51 lakh bales, 8.65 per cent higher than previous year consumption of 240.69 lakh bales. Monthly consumption of mills in Non-SSI sector during the year ranged between 20.45 and 23.35 lakh bales and averaged at 21.79 lakh bales, while the same ranged between 18.59 and21.64 lakh bales and averaged at 20.06 lakh bales in 2012-13.
 
Consumption by mills in SSI sector stood at 24.95 lakh bales, 11.09 per cent higher than previous year consumption. Monthly consumption of mills in SSI sector during the year ranged between 1.98 and 2.16 lakh bales and averaged at 2.08 lakh bales, while the same ranged between 1.72 and 1.97 lakh bales and averaged at 1.87 lakh bales the year before.
 
Month-end cotton stocks
Average of month-end cotton stocks held by mills in Non-SSI and SSI sectors during 2013-14 worked out to 39.65 lakh bales, 3.83 per cent lower than previous year average month-end stock of 41.23 lakh bales. Month-end stocks during the year ranged between 25.01 and 57.77 lakh bales, while the same ranged between 26.19 and 56.29 lakh bales in the previous year.
 
Yarn Production
All yarn production in the country in 2013-14 stood at 5295 million kgs, 8.79 per cent higher than previous year production of 4868 million kgs. Monthly production ranged between 422 and 462 million kgs and averaged at 441 million kgs, while the same ranged between 364 and 435 million kgs and averaged at 406 million kgs in the year before.
 
Cotton yarn production in 2013-14 stood at 3923 million kgs, 9.49 per cent higher than previous year production of 3583 million kgs. Monthly production ranged between 315 and 342 million kgs and averaged at 327 million kgs, while the same ranged between 268 and 322 million kgs and averaged at 299 million kgs in the previous year.
 
Blended yarn production in 2013-14 stood at 893 million kgs, 7.84 per cent higher than previous year production of 828 million kgs. Monthly production ranged between 66 and 80 million kgs and averaged at 74 million kgs, while the same ranged between 61 and 74 million kgs and averaged at 69 million kgs in 2012-13.
 

Non-cotton yarn production in 2013-14 stood at 480 million kgs, 5 per cent higher than previous year production of 457 million kgs. Monthly production ranged between 37 and 43 million kgs and averaged at 40 million kgs, while the same ranged between 35 and 41 million kgs and averaged at 38 million kgs in the previous year.

Contribution of cotton yarn, blended yarn and non-cotton yarn production to all yarn production worked out to 74, 17 and 9 per cent respectively, the same as that of previous year.

Yarn Deliveries
Computed deliveries of all yarn using production and stock data for the year worked out to 5259 million kgs, 7.94 per cent higher than previous year deliveries of 4871 million kgs. Average monthly deliveries worked out to 438 million kgs, higher than previous year average monthly deliveries of 406 million kgs.
 
Computed deliveries of cotton yarn using production and stock data for the year worked out to 3901 million kgs, 8.78 per cent higher than previous year deliveries of 3586 million kgs. Average monthly deliveries worked out to 325 million kgs, higher than previous year monthly deliveries of 299 million kgs.
 
Computed deliveries of blended yarn using production and stock data for the year worked out to 881 million kgs, 6.12 per cent higher than previous year deliveries of 830 million kgs. Average monthly deliveries worked out to 73 million kgs, higher than previous year monthly deliveries of 69 million kgs.
 
Computed deliveries of non-cotton yarn using production and stock data for the year worked out to 477 million kgs, 4.68 per cent higher than previous year deliveries of 456 million kgs. Average monthly deliveries worked out to 40 million kgs, higher than previous year monthly deliveries of 38 million kgs.
 
Cotton Yarn Exports
Registrations for cotton yarn exports in 2013-14 have increased significantly by about one-third to 1415 million kgs from previous year registrations of 1067 million kgs. Monthly registrations ranged between 90 and 144 million kgs and averaged at 118 million kgs, while the same ranged between 63 and 117 million kgs and averaged at 89 million kgs. 
 
Yarn Stock
Average month-end stock of all yarn in 2013-14 stood at 194 million kgs, 14.84 per cent higher than previous year average month-end stock of 169 million kgs. Average month-end stock in respect of cotton yarn, blended yarn and non-cotton yarn stood at 126, 46 and 22 million kgs, higher than previous year average month-end stocks of 112, 39 and 17 million kgs respectively.
 
Mill Closures
The number of mills under closure at the end of March 2014 has come down. At the end of the year 2013-14, 538 mills remained under closure while the same was higher at 571 a year ago.